While this utilization of local firms has led to exponential growth for these companies, they are still focusing heavily on their transportation and warehousing capabilities instead of trying to explore new ways to serve their client and provide a better service quality. The limited number of service offerings and lack of knowledge as to logistics has caused major customer dissatisfaction. The authors of this study sought to explore the innovation of third party logistics companies in China when it came to logistics by exploring three such companies. The research was conducted by a multiple case study method of semi-structure interviews, observations, and documentation. Twenty interviews were conducted in multiple languages and then analyzed according to qualitative coding processes to derive empirically relevant results. Through this process, they were able to identify the factors driving innovations and the key hindrances to innovation in Chinese third-party logistics firms. The factors which pushed companies to innovate include customer requirements, a need to differentiate from competitors, and a desire to increase geographical coverage. The things which are holding these companies back from innovation include the cost, time, and employee capabilities required for innovation. These three factors combined with unqualified suppliers …show more content…
For example, creating aluminum from recycled aluminum requires 90% less energy that producing the product from the minerals it is composed of. Little attention has been paid in logistics literature on how to create a reverse logistics network for recycled goods. The current government collection of recycled goods creates an inefficient market for the disposed products by creating a demand and supply relationship that is relatively constant. The researchers in this study argue that instead of directly intervening in this market, the government should instead assist in the development of free market mechanisms to coordinate supply and demand for recyclables. Instead of discouraging for-profit recyclers, as the current structure does, the government should instead provide financial incentives for the development of reverse logistics networks. This article makes a very compelling case for removal of government intervention in this market so that the free market can create more efficient